Document background
The Cash Loan Contract serves as a fundamental legal instrument in Austrian financial transactions, used to document and formalize the lending of money between parties. This document is essential for both institutional lenders (such as banks and financial institutions) and private lenders when providing loans to individuals or businesses. The contract must comply with strict Austrian regulatory requirements, including the Banking Act (BWG), Consumer Protection Act (KSchG), and relevant EU directives. It contains detailed provisions on loan amount, interest calculation, repayment terms, default consequences, and borrower protections. Special attention is given to consumer protection requirements when the borrower is an individual, including mandatory cooling-off periods and information disclosure requirements. The document is typically used for both secured and unsecured loans, with additional provisions included when collateral is involved.
